SpaceX is planning a 75 billion IPO. BlackRock is considering betting up to $10 billion

SpaceX is heading for its biggest-ever stock market flotation, aiming to raise about $75 billion at a valuation of about $1.75 trillion. BlackRock is reportedly considering entering the issue as one of the key institutional investors with between $5 billion and $10 billion from its portfolio of actively managed funds.

This would make BlackRock one of the largest "anchor" investors in the entire transaction and would send a strong signal of confidence to the market in the long-term growth of SpaceX, despite the very high valuation. However, the final investment amount will depend on the final subscription price of the shares, market conditions just prior to the IPO and how SpaceX sets up the structure of the offering.

What we know about BlackRock's upcoming investment

According to The Information, which has been confirmed by other sources, BlackRock $BLK is considering participating in the SpaceX IPO in the range of $5-10 billion.

• The money would come not from passive ETFs, but from a portfolio of actively managed funds that together manage about $536 billion.

• The final amount may yet be adjusted depending on the final subscription price and the total size of the offering.

By comparison, if SpaceX does indeed raise up to $75 billion at a valuation of $1.75 trillion, BlackRock's $10 billion ticket would represent a stake of the order of 0.5-0.6% in the entire company and up to roughly 13% of the total subscription volume. BlackRock already holds a small private stake in SpaceX worth about $300 million, but this is relatively small compared to the positions of funds such as Fidelity, Baillie Gifford or Franklin Templeton.

Both BlackRock and SpaceX declined to comment on the reports, so this is still anecdotal but confirmed information from multiple parties.

SpaceX: record IPO on the horizon

According to Reuters, SpaceX is heading for an IPO on Nasdaq as early as 12 June, with the documentation being prepared as a confidential filing - a non-public submission to the regulator followed by the prospectus and roadshow itself.

• Target valuations are approximately $1.75 trillion.

• The company is looking to pull about $75 billion of new capital out of the market, which would trump even the largest U.S. IPO of recent decades.

The Reuters analysis notes that even in the world of big tech debuts, this would be an outlier - by comparison, no one has ever realistically achieved a valuation of around $1 trillion at IPO, with most "mega-debuts" an order of magnitude lower. SpaceX benefits from a unique position combining a rocket business (Falcon, Starship), the global Starlink satellite network and a growing role in defence and communications.

In connection with the IPO, the company also informed shareholders of a planned 5-for-1 stock split, which is expected to reduce the price per share from roughly $526 to $105 and make the title more accessible to a wider range of investors.

Why SpaceX is so interesting for BlackRock

The Information and other media outlets cite several reasons why BlackRock is considering such a big bet:

• BlackRock's current private stake (~$300 million) is small compared to other large investors; the IPO is a chance to "catch up" exposure to a level commensurate with the firm's importance

• SpaceX is seen as a key "infrastructure asset" for the future - from satellite internet to defense to space transportation, with potential for multiple divisional spin-offs (Starlink, Starshield, etc.)

• even at a very high valuation, long-term revenue and margin growth can justify a premium valuation if SpaceX maintains its technological edge and extends the monetization of Starlink (consumers, businesses, governments)

Additionally, a large "anchor investor" like BlackRock helps stabilize the IPO - it signals to other institutional players that there will be long-term capital on the order book after the IPO, not just short-term speculative money.

What remains open for now

It should be stressed that:

• the 5-10 billion figure is still preliminary and may change depending on the bookbuilding and the final price

• Reuters has been unable to independently verify The Information's report, although other sources (Gurufocus, regional media) have elaborated further

• While the timing of the IPO itself is targeted for mid-June, plans may shift if market conditions or the regulatory process are not ideal

For investors, this means the SpaceX/BlackRock story is still a "term sheet under negotiation", not a done deal. Yet it already shows how extremely capital intensive (and attractive) space and satellite projects have become in an era when the infrastructure of the internet, communications and defence is being rewritten.